Japan's Ootoya says to formally oppose Colowide's takeover bid (updated)
17/07/2020 02:26
(Adds response from Colowide, Ootoya shares)
TOKYO, July 17 (Reuters) - Restaurant chain Ootoya Holdings
2705.T said it would oppose a takeover offer from its top
shareholder, Colowide Co 7616.T , turning the bid into the
Japan's latest hostile deal.
In an emailed statement, Ootoya said it would announce on
Friday that a group of employees were against the takeover,
followed by a formal decision on Monday by the board of
directors to oppose the bid.
Ootoya shares rose over 3% to 2,949 yen ($27.50) after the
news, while the broader market .N225 was slightly down.
Colowide last week offered to buy Ootoya at 3,081 yen a
share in a deal that would boost its stake in the company to
51.32% from 19.16%. urn:newsml:reuters.com:*:nL4N2EG2G4
Japanese companies are increasingly seeking more control of
affiliates to streamline operations.
A spokesman for Colowide, which runs several restaurants
from izakayas to sushi chains, said the company does not have
any immediate comments on Ootoya's plan to oppose the bid.
Ootoya has criticised the offer, saying it came as a
surprise given Colowide knew the majority of shareholders
opposed such a move. urn:newsml:reuters.com:*:nL4N2EG2G4
The bid also follows Colowide's failed attempt to install
candidates to Ootoya's board - a proposal rejected at the annual
shareholders' meeting last month.
($1 = 107.2500 yen)
(Reporting by Junko Fujita; Editing by Chang-Ran Kim and Himani
Sarkar)
((813-4563-2711, junko.fujita@thomsonreuters.com, Reuters
Messaging:junko.fujita.reuters.com@reuters.net))